Coach has been successful in its bid to secure a secondary listing on the Stock Exchange of Hong Kong. It will begin to trade on the Asian country’s market on December 1.
Coach already lists on the New York Stock Exchange, but with its plans to increase its profile in Asia it makes sense to secure a listing on the continent. It will reportedly float up to 294 million Hong Kong Depository Receipts, which represent one tenth of Coach’s common share, as part of its trading debut this week.
The Hong Kong listing should do more than simply raise its profile in Greater China. It will also allow the American label to attract more Asian investors, particularly in China where it expects the greatest expansion in coming years.
A recent report from leading global financial services company Credit Suisse says Coach stands to make $1 billion, or roughly 14% of total sales, in China by 2016. That’s a real jump from the $187.5 million, or 4.5%, it earned in China this year.
I’ve always seen Coach as more American than apple pie, but I’m impressed with the steps it’s taking to raise its global profile. Do you think Coach will succeed on the Stock Exchange of Hong Kong?
